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You are an equity portfolio manager, and you defined the investment universe with 65 stocks. You would like to construct a mean-variance efficient portfolio using

You are an equity portfolio manager, and you defined the investment universe with 65 stocks. You would like to construct a mean-variance efficient portfolio using these 65 securities.

2.1 How many estimates of expected returns, variances, and covariances are needed to optimize this portfolio?

2.2 If you could safely assume that stock market returns closely resemble a single index structure, how many estimates would be needed?

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